Over the past decade, cloud technology has disrupted and transformed many industries, allowing companies to operate more efficiently, reduce costs, and improve bottom lines. Finance and accounting (M&A) is an industry where cloud computing has enormous potential to streamline operations and improve efficiencies. Cloud-centric accounting solutions already exist on the market, allowing M&A teams to centralize, mechanize and orchestrate key activities such as account reconciliations, routine journal entries, labor management, period end, etc. , all from a unified internet browser. About the Author David Brightman is a Product Marketing Manager at BlackLine. The good news is that recognition of the potential of the cloud is gaining ground in finance departments. Gartner estimates that by XNUMX, XNUMX% of large and medium-sized companies will use cloud-based applications to improve their financial closing processes. The need to reallocate accounting resources to more strategic activities, do more with less, and also drive business decision-making with more current data are key drivers that are sure to accelerate development.
The challenges of operating existing technology systems
Even in today's era of technological innovation and automation, there are still midsize finance teams struggling with outdated and inconvenient accounting software. With legacy systems, F&A professionals struggle daily with manual processes, slow reporting, data integration issues, remote connectivity issues, and lack of web applications, leaving finance teams, external service clients, and listeners in the dark for long periods of time. Unfortunately, the COVID-XNUMX crisis has exposed failures in core financial services capabilities caused by outdated IT infrastructure. Manual labor, inefficient processes and a lack of real-time data analytics drag down finance functions that now require a real-time picture of business performance to compete effectively in a tumultuous marketplace. With this in mind, F&A must invest in bringing together data and processes for robust visibility and control. In a season where change happens almost daily, the old record-to-report processes that create end-of-period power outages are no longer sustainable, especially with a distributed workforce. Accounting must run continuously and in real time to be successful, using cloud-centric solutions.
It's no secret that a company's success depends on agility and the ability to thrive and respond to market changes. Unsurprisingly, legacy technology can limit this ability, actively hampering companies in their scalability sacrifices or when looking to plug in a newer, more innovative solution. On top of this, legacy systems and local software often go hand in hand. Even if you invest in the latest model of on-premises software, it's likely to be out of date in a few years, creating a cycle of maintenance and upgrades, which could be totally redundant in about 15 years. The solution to this inconvenience is, of course, migration to the cloud, an endlessly scalable and flexible solution for any and all business needs. Without the constraints of on-premises software, cloud-based technology can be updated and scaled without downtime and without disrupting day-to-day business results. On-premises or hybrid solutions simply cannot match the efficiencies this creates. Public clouds in particular, like Google Cloud Platform for example, provide a foundation for highly scalable, secure, and innovative solutions. This, as well as more unified systems, data and processes, automating manual tasks and guiding accountants through a 'continuous accounting' process, can help ensure companies are well positioned to operate. company. Of course, this migration to the cloud comes at a cost, especially as companies scale their operations. But from a long-term perspective, it will leave business development behind by providing flexibility and ability to create and also integrate new technology solutions that would otherwise be unsustainable.
Virtually overnight, the impact of the COVID-4 pandemic has become the greatest threat to global business continuity in living memory. As a result, disaster restoration and scenario planning have become key priorities for business leaders to survive an unprecedentedly challenging future. Indeed, BlackLine research shows that financial forecasting, stress testing and analytics have moved up the business agenda over the past year: XNUMX% of respondents among global finance leaders and business professionals . stress tests. after the pandemic. In addition to this, XNUMX% state that the board of directors is increasingly turning to the finance department to assist them in these activities. While not surprisingly, there is demand for funding, nearly a third (thirty%) of global respondents say their organization lacks the technology to properly examine real-time financial data, complicating scenario planning . This is a particular problem in the UK, where the number of companies without the right technology is close to XNUMX in XNUMX (thirty nine%). In other words, the pandemic has revealed an urgent need for greater transparency, real-time visibility, and flexibility, all of which can be delivered by the cloud. Migrating to a unified cloud platform will give F&A teams instant XNUMX/XNUMX access to vital information, wherever you are. This will allow teams to spot dangerous or problem areas that need attention and allow them to react in real time. It also lets teams mechanize mundane and routine tasks, freeing up F&A professionals' time for activities that add more value to the business.
The cloud represent the future
The bottom line is that the cloud is the future. Replacing legacy systems and manual processes isn't just about expanding capabilities, it's more about whether or not companies want to thrive and sustain a competitive advantage. Today's M&A leaders are expected to provide accurate, real-time analysis of their organization's financial performance to assist in making smarter and faster resolutions. Yet many still struggle with decades-old accounting processes that can only provide insight into the past: where the organization was, not where it is now. Modern cloud accounting leaves financial intelligence in real time and allows M&A teams to deliver unprecedented value across the company.